The Birth of a Start Up – Built In Chicago! (Part 4) – “What’s it about?”

So I started with some founder background, but now let’s get into what this start up is about. The following is our founder talking about how this company came to be and a bit on where it is today. Very simply he describes the market, the problem, his solution and the results of that solution.

When I first came up with the idea of creating a job search management system, I used it as an intervention in my doctoral dissertation, which was on the impact of social networks in the job search. I found that job seekers lacked an organized process to find a job. This lengthened the time to find a job, decreased motivation during the search and occasionally led to less than optimal job acceptance – settling.

Central themes of the dissertation was the importance of providing structure throughout the job search, a system to allow job seekers access to the hidden job market and to manage the process in a simple structure.

The results demonstrated that those who used the system were twice as likely to find a job and I knew then that I had to disseminate this to as many job seekers as possible.

The first thing I did was to convert my process from paper and pencil to a binder format so that job seekers could use it as a management tool kit while they looked for work. Because I was connected to employment agencies, I had a list of people who I could get in contact with to show the system to. At first I went in thinking that I would provide this for free and quickly realized that they were willing to pay for it. This was the moment that I realized that I had a business.

The start up of the business was done on a shoe string budget. I only had to produce the kits when they were required so I developed a relationship with a manufacture and was able to produce them on demand. I started a newsletter, went to conferences and made direct calls. The low tech tool kit was really catching on. It was simple and more importantly it provided real time feedback on how the job seeker was doing. It was easy to market as well since I was focusing on professional job coaches and names were easily available.

In mid 2000 I got a developer to create the first online version of the tool. However, although I was excited, the job coaches and their clients weren’t ready for an internet tool. I realized I introduced it a few years too early and needed to wait for internet capabilities and usage rates to increase.

Fast forward to today and the conditions are perfect. The platform as I envisioned has been adapted to the Internet and unfortunately we are going through one of the worse employment rates in some time. I’ve hired a developer, worked through the requirements and produced the first version of the online tool kit. I’m confident based on the reception of the low tech version that this will quickly catch with job coach professionals. Recognizing I need to assemble a team to make this work I engaged a marketing and sales professional whom I’ve worked with in the past. He in turn found a seasoned entrepreneurial executive to serve as our president. It was with this team that we realized there is no need to only target job coaches but there’s a much bigger opportunity to go directly to the job seeker.

We believe we have a global solution that can scale rapidly and create multiple revenue streams, while addressing a significant problem facing job seekers. Our goal is to help people find jobs quicker and help them manage their career toward their ideal (dream) job. With a bit more coding we’ll be hitting our first target market. I can’t wait!

The Birth of a Start Up – Built In Chicago! (Part 3) – “Life gets in the way”

Well I committed to this blog posting of my start up experience and today is a tough entry.
I tried to address in my book the question of “how does one person take action on their idea and start a company, while another lets their idea die on the vine?” I came up with the “Entrepreneurial Formula”. In short, the formula reads, Idea + Opportunity + Situation = Entrepreneurial Activation. I won’t explain the entire formula; I’ll only focus on Situation.

Situation = Your personal situation, your professional situation and the environmental situation. In short, if the idea and opportunity align then these three situational factors in the entrepreneur’s life need to be considered. If two or more of these situational factors are negative then it will greatly hamper the entrepreneur’s likelihood of succeeding. If two or more of these situational factors are positive then it will greatly enhance the entrepreneur’s likelihood of succeeding. If situational factors are neutral they will neither have an overbearing influence positively or negatively.

I’ll be even more granular and describe only the personal situation. A person’s personal situation can include; if they are in a relationship/married, sick or healthy, in debt, experiencing legal issues, moving, attending school, caring for loved ones, etc. Although, these factors have no relevance as to the validity of the entrepreneur’s idea, they do significantly impact the entrepreneur’s ability to implement their idea.

In my own case in helping to start this new start up, I had just come off caring for my now 18 year old daughter who was diagnosed with a rare bone cancer when she was 16. She is doing fine – thank you! Regular checkups now replace chemo treatments and daily concern of her well being. We think we are in the clear and only occasionally look over our shoulder. However, last November my brother was diagnosed with an aggressive and incurable brain tumor. During this time and while his illness progressed I found myself presented with a new start up opportunity. My personal situation was negative. This was the worst time personally to start a business. My brother would be moved to a nursing home and both I and my mother (the only family members left on the Weber side) would visit daily and help with his care. His physical and mental condition would deteriorate daily.

Having to juggle your responsibilities between executing the start up and family obligations takes both a physical and mental toll. My brother passed away peacefully yesterday at the age of 48. I was a month into being officially on board with the start up. Today I will make funeral arrangements with my mother, console her and attend to his affairs. This is just part of my journey and start up story. My brother’s death actually now adds fire to my effort and desire to make my start up a success. It reinforces what I always preach and that is that life is short and unscripted. Do what you love, not what you have to do. Put your effort and talent toward accomplishing great things.

My two co-founders and I believe our start up will be a great accomplishment that will impact millions of lives positively. That’s exciting! Although, my brother will be missed, my entrepreneurial formula is now fully positive and his memory will be my fuel to continue building our start up to a successful launch.

*** You can read about my brother’s journey at http://www.caringbridge.org/visit/peterweber

The Birth of a Startup – Built in Chicago! (Part 2)

Every new business starts with an idea. In my book, “Idea to Exit”, the word idea is an acronym where the “I” stands for innovation. Innovation is the kernel that a new business is built off of. It is the substance of the business idea. My new business has two other co-founders, who started at the idea phase and I joined about six months after that point. In this posting, you’ll hear from the co-founder who generated the idea for this business. Since we are moving quickly, I’ll likely post more than once a week in order to bring events up to date rapidly for you the reader.

I’ll never forget the first day of my first job after graduating from my Masters program in 1993. My new job as a job search facilitator came to be after I realized I didn’t have a chance of landing my dream job, a professor’s position at a university. I rationalized the employer counselor position by linking the experience to making me more competitive for what I really wanted to do.

The job itself came about through a contact of mine. Basically, by chance I ran into him at a wedding of a mutual friend where I mentioned that I needed a job. He told me that the organization he was working with required employment counselors. Even though I didn’t have any experience, I could see the position as an opportunity to develop some skills that could transfer to other positions in the future.

My first day on the job, I spent most of that day preparing for the coming workshops, I couldn’t help but feel lost. Lost in the sense that I was about to facilitate a job search session which was intended to help people find work, when in fact I had no clue how to do that. I spoke with other facilitators asking for advice and for a framework I could use to guide the participants through. Advice was easy to find, the framework on the other hand was not readily available. A framework, or process, representing the best practice for job search was lacking.

This revealed two things to me. With experience on this job and learning from other counselors I could develop a consistent and proven framework to help guide job seekers through a challenging process. Further, I recognized the power of my social network in helping me to land this first job. From that first day I started working with job seekers to my present work as a human resource development program professor and senior fellow, I have been focused on the role of the job seeker and how social capital plays a vital role.

I found a problem present in a large homogeneous market of individual job counselors and coaches who help job seekers. They lacked a process. Each relied on their own tribal knowledge and most could not connect the job seeker’s social network to a search process. For that matter, I realized that individual job seekers did not have structure to support an often isolated process. Creating a job search framework (process) that allowed job seekers to follow provided the structure necessary to remain motivated throughout the search and get results faster.

The combination of providing a job search framework and the understanding that jobs do not come from traditional sources but through our connections is critical to decreasing the time it takes to find a job. Like most entrepreneurs I discovered this business idea while working within the industry. It was only by that experience that I could see the market deficiencies for my target customer. To validate my idea I used focus groups and interviewed job professionals in nonprofit employment agencies. Deeper investigation revealed little in the market solving this problem and realization that I could fill a gap in the market place became an empowering feeling.

Although the idea started out as a result of my own work situation, the need to tap into resources from my network has come into play even to bring this to the next level. The message of tapping into one’s social capital that I gave to my clients long ago applies perfectly to the journey ahead of me. Through my social network I was able to align with my co-founder, who brought start up experience and a shared passion for our new company mission. You will hear his story next.

Now back to work!

The birth of a Start Up – Built In Chicago!

Call it a social experiment, giving back or just plain crazy, but starting today I will be sharing my new start up experience as it unfolds. I have joined a new web based start up that is focused in an extremely high growth potential industry. The company is located in Illinois and has plans to seek funding soon. We have hopes of being, yet another, shining example of Chicago’s technology start up community. The purpose of blogging our experience is to help other start up leaders watch a live case study unfold and learn from our experience. I’ll plan to provide updates every Monday.

I founded Technology Resource Center in 1995 and sold it to a Fortune 100 in 2006 – eventually leaving in 2009. For the past two years, I have provided free advisory service to dozens of entrepreneurs. I’ve helped them with everything from: strategy, business plan writing, sales, marketing and funding. Most recently I launched High Growth Illinois out of the SBDC to provide free advisory service to companies that had the potential for high growth. I am a regular speaker on the topic of entrepreneurism, I am an adjunct faculty teaching entrepreneurism and I wrote a book on the topic, From Idea to Exit: The Entrepreneurial Journey. I’ve also volunteered to help youth understand entrepreneurism by way of Future Founders and The Network for Teaching Entrepreneurship.

Now it is time to do something really exciting – start a company again and let the entrepreneurial community ride along! I’ve met two partners who have created a platform that is relevant and timely and provides a solution to a big problem. Now rather than create this start up behind closed doors, I thought it would be really cool to share our experience with other entrepreneurs and entrepreneurial dreamers. To extend my mentoring and teaching, I plan to blog about the growth of our start up from inception to funding and beyond.

I will announce the company in the near future. It is built around being social and the concept of social capital. Our company will teach the principles of social capital, provide a tool for individuals to utilize their own social capital in a way that benefits our users and stakeholders. Social capital involves what you “give” in addition to what you “get”. Our company and culture promotes social capital and what better way to do so than by demonstrating it at our very onset.

I encourage you to follow our journey. I encourage you to give the gift of social capital by sharing our blog postings with those in your network that can benefit from our experience. And finally, I’ll ask for your support when we launch, so that Chicago can raise another tech start up high as proof that Chicago is the place to be to start a technology business in the new century!

Enjoy your Journey,

Jeff Weber

Do you remember the, “Made in the USA” promotion?

Back in the 80′s there was a big marketing campaign encouraging Americans to buy American made products under the “Made in the USA” promotional brand. I think a great portion of that effort was funded by unions – obviously to support and maintain union jobs. The only flaw in that promotion is that it was focused on patriotism. It tried to pull on our nationalistic sense of duty to support Made in the USA. Hey, I’m all for that, but that is not necessarily a consumer value proposition.

What is a consumer value proposition related to Made in the USA? Quality, Safety and Trust. Today I’m practically forced to buy products from China because they are everywhere. What I hate is not knowing how much lead is in that product or other toxins that seemed to escape our nation’s protective measures. I also want quality. Stuff simply does not last very long and it’s because it was made cheap.

What does American manufacturing do well? American manufacturing probably has the highest quality in the world. We can trust American made products that they are safe and reliable. Those are huge value propositions that sell. The argument is that American products can’t compete based on price. I believe they can. There is a world market that will pay more for a high quality product that the consumer trusts. That’s American manufacturing’s niche and we need to market to that niche. The trick is that American manufacturing needs to sell to that value proposition. To date, we’ve been silent about these consumer benefits.

Please take the time to read this very spot on article by Todd Lipscomb. Better yet, if you like what you hear, get his book. Better yet, if you like what you hear buy American made products from his site.

The government will not bring jobs back – so stop holding your breath on that one. Jobs will come from companies that grow and subsequently hire. They can’t grow if they don’t sell in the world economy. Government handouts (i.e. welfare, unemployment, food stamps, etc.) are perpetuating the problem. Entrepreneurism started in this country out of necessity. Immigrants hit our shores with zero assistance and nothing but their own desire, effort and ingenuity to get going. They took manual jobs, they did things below their skill set and then they started companies, and they made it happen. Do people need assistance – sure? But look at Greece to see what happens when government assistance turns into government interference.

The tough love is that sometimes we have to take steps backward to move forward. Sometimes we have to cut off the “dole” to force action. It is said that 52.6 percent of Americans – now receive significant income from government programs, according to an analysis by Gary Shilling, an economist in Springfield, N.J. If that number is true – that should scare the heck out of all of us. How can an economy continue with that expense on it’s shoulders?

Sometimes we have to accept that some people are not ready or willing for change and they will be left behind. Is that cold? I think that’s historical and representative of how things evolve. It’s especially true in business. Just read up on creative destructionism to see why it is a good thing. We need to stay hungry to progress. Right now, I don’t think our population is very hungry. I think we find it easier to hold our hand out and wait on someone’s assistance. We as a people and as individuals will be the only ones responsible for our future. Why would you want to entrust that to anyone but yourself.

Does Chicago’s Entrepreneurial Scene Play “Follow the Leader?”

If you have not noticed, Chicago is increasingly becoming recognized as an entrepreneurial minded city. You might say, “Hasn’t it always been?” Well, yes. Many industries flourish in the greater Chicagoland area and have done so since our great city’s inception. The piece I’m referring to is less visible to most of our citizens and businesses for that matter. I’m talking about the entrepreneurial support structure that has emerged – or matured over the past two years.

A multitude of organizations and individuals in Chicago have poured their passion and effort into making Chicago an innovative leader that attracts start ups who stay and grow in Chicago. These include but are not limited to: The Chicagoland Entrepreneurial Center, TiE Midwest, Excelerate Labs, Hyde Park Angels, Wildcat Angels, The Big Idea Forum, Funding Feeding Frenzy, Built in Chicago, Illinois Technology Association and my new effort High Growth Illinois. Their leader’s mindset has spread and more and more join this allegiance every day to foster, mentor and fund tomorrow’s leaders. Once fragmented and working independently, these groups and individuals are starting to find ways to work together and combine resources to truly make a difference. A culminating example was the recent Chicago Tech Week, the anticipated, Business Innovation Conference, SocialDevCamp Chicago, Healthbox and Chicago Ideas Week in October.

However, as fast as we move forward as a supporting force of entrepreneurism, we still find ourselves making the same mistakes we counsel our young start ups about and that would be “following the leader”. At least, I’ll say the perceived leader. Entrepreneurs are doing some great things in Chicago as are the support organizations mentioned above. Yet, there continues to be a comparison to our West Coast counterparts who seem to launch more businesses and provide more funding for those businesses than what is recorded in Chicago. Is the West Coast better than the Midwest? Not really, they’re just different and we need to remember that.

In order for our efforts as entrepreneurial support agencies to be successful, we need to be different, and we need to align with the requirements of the entrepreneurs we work to serve. Sure the West Coast can crank out hundreds – no thousands – of technology related ventures, but I’d like to know how many of them actually succeed and create jobs. The Midwest, more specifically Chicago, is different, and that is the essence of entrepreneurism – differentiation. We need to find and define what makes our entrepreneurs, our region, our industries different and unique and serve them in ways that best reflect their needs.

What makes Chicago different? For one, we are leaders in boot strapping as a means to launch our businesses, yet there are few, if any, resources available to help in those efforts. Chicago and the surrounding region house a high percentage of Fortune 500 companies, yet we don’t align them well to innovative start ups in the supply chain. Our businesses tend to focus on B2B models, whereas the West Coast dominate the B2C play. The B2C play still attracts investors to revenue void entities who can capture eye balls and registered users better than profitability. Let’s face it, in Chicago we’re still a bit old school in that we like to see black ink vs. red.

We don’t have to follow the West Coast formula exclusively. Yes, they’ve done a great job, and we can copy and improve where it make sense. But let’s challenge ourselves to be disruptive and innovative by listening to what our customers – our entrepreneurs – need to be successful. Do we need more Angry Birds or do we need to find ways to bring to market the types of technologies tied up in the leading research universities that surround our city? Is funding the benchmark to measure or are we better served following customer and supplier introductions made by mentoring institutions and well connected individuals?

Yes, funding is vital to leap on opportunities. Yes, the West Coast is a leader, and we can learn from them in many respects. My point is that we have a really good thing going in Chicago. We have a very broad base of industry and the start ups that emerge daily are as diverse as our population. The cities with fast growing entrepreneurial activity, such as Austin, New Orleans and Pittsburgh, are booming because they are focused internally on their own uniqueness. As a cohesive group with common goals, let’s remember our own entrepreneurial roots and focus less on the other guy and more on how others will want to copy us.

The Founder Institute

I was just introduced to the Founder Institute (http://www.founderinstitute.com), a pre-seed tech incubator out of Silicon Valley, who is exploring opening up a chapter in Chicago. Right now, they have 17 chapters worldwide. This program is designed to work mostly with people employed full-time who have a business idea or have started a business part-time. Also, it is designed to help entrepreneurs running their business full-time as well. Each class is taught in the evening by seasoned tech CEOs/mentors, many of which will come from Silicon Valley. I plan to be a mentor for the Chicago chapter.

The Founder Institute is a unique option for a technology focused start up looking for experienced professionals to guide them to greatness. There is no cost to join, but a very reasonable fee of $900 to cover meals and room fees during the week of training.

The Founder Institute employs a unique Bonus Pool where everyone shares equity in the companies formed from each semester. Here’s how it works – each Graduate contributes 3.5% of their company equity in warrants to a 10-year Bonus Pool with other peers from the current semester. The Pool returns are then distributed as follows:

40% goes to the Founder Institute, it’s Local Directors and Partners.
30% goes to the Mentors, and each Mentor’s individual share is based solely on anonymous ratings received from the Graduates.
30% goes back to the Graduates themselves – allowing them to earn returns based on both their success, and the success of their peers.

When one succeeds, everyone receives financial upside.

The early bird application process is only available until 8/28. Only a few spots remain. Right now, it won’t cost you anything to apply. You can apply at http://www.founderinstitute.com/apply/chicago?secret=preview

Best of luck to you all and I hope to see some of you at the Founders Institute as they launch for the first time in Chicago.

High Growth Illinois

I have exciting news to share! I’ve been recruited by the Small Business Development Center of Illinois (SBDC) to establish a new advisory service for start ups and existing firms in Illinois that have high growth potential. This can be any type of firm in any type of industry. Our program is called, High Growth Illinois.

High Growth Illinois will align entrepreneurs with seasoned advisors to assist with everything from: business plan creation, strategy, sales, marketing and most importantly preparation and introduction to funding sources. High Growth Illinois hopes to align entrepreneurs to potential advisory board members and place applicable firms into appropriate area incubators. High Growth Illinois supports and will work closely with other Illinois agencies established to support entrepreneurial efforts.

High Growth Illinois will offer entrepreneurs:
– No cost Advisory services (all advisors are entrepreneurs and hold MBA’s)
– No cost access to a CPA for pro-forma, equity calculation and other assistance
– Numerous educational, networking and advisory events geared toward high growth potential firms and their entrepreneurs
– Networking assistance and guidance to gain customers, suppliers and funding (bank, angel, venture capital)

The goal of High Growth Illinois is to grow revenue and employment for new and existing firms that have high growth potential.

I need your help! This no-cost service can only help if entrepreneurs are aware of it. Further, High Growth Illinois is grant funded and does not renew. Meaning, we only can provide our service until September 2012. Help spread the word to your network!

What can you do?
High Growth Illinois is looking for speakers, workshops, seminars that provide content applicable to high growth potential firms.
High Growth Illinois is looking for high growth potential start ups and existing businesses. Send them our way! Post our info on your blog, newsletter, etc.

How do entrepreneurs learn more?
Contact Jeff Weber at jweber@harpercollege.edu
Learn a bit more at http://goforward.harpercollege.edu/page.cfm?p=4398.

Help with my Blurb!

To my friends and connections,

I am scheduled to release the second edition of my book in October and I would like your help to reach into your network to potentially introduce me to individuals who may write a brief “blurb” about my book. I am looking for successful entrepreneurs who have; high name recognition, receive current mainstream press and media, may be a business personality, may be a popular author, or may be a head of a well recognized entrepreneurial support organization. Is that anyone you or your network knows?

A “blurb” is simply a brief comment about the book from the individual. For instance, my first edition had this blurb:

“Drawing on his own remarkable experience, Jeffrey Weber offers hope and help to the millions of prospective entrepreneurs on whom our economy depends.”

Carl J. Schramm, President and CEO
Ewing Marion Kauffman Foundation

My publisher Triple Nickel Press will provide everything for “blurb” writers and it is a chance for an individual to gain some additional presence, branding and credibility as an expert in their field. Plus, it’s fun!

As everything with a publisher there are deadlines, so please “tap” into your network as soon as possible and relay any potential individuals to me directly at info@jeffweberventures.com. Thank you in advance for your consideration!

Enjoy your Journey,
Jeff Weber

Seeking developer who wants equity

I’m looking for a co-founder that has exceptional development and project management skills. We are launching a consumer oriented personal healthcare records business and desire to add someone with technical talent to the founding team. This person does not have to leave a job to join — but they must be willing to work their tails off during off hours to complete v.1.0 in a short time frame. Limited seed money is available with the intent of creating a beta (v.1) and then securing a long term sophisticated investor who shares our vision (VC likely over Angel). Once funding is secure we would expect this person to commit full time and make hiring decisions.

I have confidence in obtaining the proper funding and taking this company to a market leadership position rapidly. We intend to build a platform that will occupy a new space in consumer cloud blending social aspects with personal health care data. Our go to market strategy combined with the right user experience will make this a home run -creating an entirely new industry and market.

Duties:
- Determine project scope and architecture
- Determine talent and resource requirements
- Code

Skills (not complete, you’ll have to tell me the rest):
- Java, PHP, maybe .net
- Highly scalable database architecture
- Knowledge of HL7, CCD, CCR a major plus
- Knowledge of Facebook, LinkedIN type architecture and functionality key
- Knowledge/experience with EMR or PHR (electronic medical records)
This person must Desire owning their own business and being part of a high growth start up. The business talent is secure – we need technical talent. We offer a once in a lifetime opportunity with this concept and want to find the right person to round our team. Could that be you?

Serious inquiries only! I can’t waste time with tire kickers or curiosity seekers.

- Send resume (as complete as possible – LinkedIN profile works nice too).
- Brief statement as to why you want to be part of a start up.
- Brief statement why you think you would be successful & what you are willing to “do with out” for the first year to make this effort successful.

Send to: jeffreyweber1@comcast.net

http://www.linkedin.com/in/encubator